The Fed can influence the federal funds rate by adjusting the level of reserves in the banking system.
举一反三
- The federal funds rate is the interest rate that A: banks charge their best corporate customers B: banks have to pay when they get a loan from the Fed C: banks have to pay when they get a loan from another bank D: banks receive from the Fed for the reserves they hold as deposits at the Fed E: the federal government pays on its three-month Treasury bills
- Which of the following is true of the fed funds rate A: It is the same as the Treasury rate B: It is an overnight interbank rate C: It is a rate for which collateral is posted D: It is a type of repo rate
- Which of the following actions by the Fed would reduce the money supply? A: an open-market purchase of government bonds B: a reduction in banks’ reserve requirements C: an increase in the interest rate paid on reserves D: a decrease in the discount rate on Fed lending
- The Bretton Woods system includes five aspects: the monetary standard system, the exchange rate system, the reserve system, the balance of payments adjustment system, and the financial system.
- The European Central Bank is a ( ). A: transnational central banking system B: single central banking system C: composite central banking system D: quasi-central banking system